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Influential Factors of Foreign Market Entry of Korean Fashion Firms  

Cho, Yun-Jin (Dept. of Clothing & Textiles, Seoul National University)
Lee, Yu-Ri (Dept. of Clothing & Textiles, Seoul National University/Research Institute of Human Ecology, Seoul National University)
Publication Information
Journal of the Korean Society of Clothing and Textiles / v.30, no.12, 2006 , pp. 1768-1777 More about this Journal
Abstract
As the fashion industry comes under the influence of globalization throughout all fields of industry, the globalization and the market entry strategies are required for Korean fashion firms. This study attempted to analyze the factors influencing foreign entry mode of Korean fashion business based on Eclectic Theory. Data collection has been carried out from November 25 until December 25, 2005. The questionnaires were sent through e-mail or fax to 622 trading companies. 67 questionnaires were returned for a response rate of 10.7%. Of these returns, 61 usable questionnaires were employed for data analyses. Descriptive analysis, factor analysis, discriminant analysis, and t-test were used for data analysis. First, the most important venture motivation was price competitiveness and many firms were engaged in both production and sales in their target countries, which were mainly in Southeast Asia. Second, the firm's ability and experience were found out as ownership advantage factor, investment stability and market potential as location advantage factor, and contract stability as internalization advantage factor. Third, the result of discriminant analysis showed that location advantage factor was a significant factor in predicting the entry of fashion firms into foreign countries.
Keywords
Globalization strategy; Foreign market entry mode; Fashion firms; Dunning's OLI paradigm; Location advantage;
Citations & Related Records
Times Cited By KSCI : 3  (Citation Analysis)
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